TAKEAWAYS Key

Borrower Beware

GF Data, an ACG company that tracks private M&A transactions, found that the interest rate on senior debt in the first quarter reached its highest level since early 2007. Based on data collected from its private equity contributors, GF reported that average senior debt pricing shot to 8.1% in Q1, up from 6.9% in the fourth quarter of 2022. “Costly Capital,” p. 34.

Waiting Game

Market uncertainty is prompting some businesses to take a wait-and-see approach to selling, opting instead for alternative forms of financing. VSS Capital Managing Partner Jeffrey Stevenson says he’s seeing companies pursue structured capital solutions in lieu of an outright sale to avoid ceding control. “Signs of Life,” p. 40

4

3 1 2

Buying Ai

A bright spot against a dim M&A backdrop this year has been acquisitions tied to artificial intelligence. Global M&A volume was down 48% in the first quarter compared with a year prior, while AI-related deals were down only 7%, according to Dealogic and GlobalData. “AI—The Future of M&A,” p. 14.

Compliance Complexities Power Investment

The environmental, power and infrastructure services subsector has created an opportunity to partner with solutions providers, thanks to various trends in the space, writes a partner at Ridgemont Equity Partners. One such trend is the need to abide by increasing compliance requirements, which is prompting asset owners and operators to turn to outsourced service providers with specialized capabilities and expertise. “The Interconnected Ecosystem of Environmental, Power and Infrastructure Services,” p. 12.

5

Closing Time

The clock is ticking on many private equity holdings, leading to predictions that the third and fourth quarters will see heightened deal activity as PE owners look to exit their positions, regardless of whether broader economic conditions improve. That could prove welcome news to limited partners, many of whom are feeling the liquidity pinch. “Dry Powder Reserves Point to Insatiable Buyout Demand,” p. 16.

STRATEGY OVERVIEW

PENINSULA CAPITAL PARTNERS IS A ONE-STOP PROVIDER OF JUNIOR CAPITAL WITH THE CAPABILITY, FLEXIBILITY AND COMPETENCE TO ADDRESS ANY TRANSACTIONAL FINANCING NEED VIA SUBORDINATED DEBT, PREFERRED EQUITY AND/OR COMMON EQUITY. WE SPECIALIZE IN NON-SPONSORED, CO-SPONSORED AND COMPANY-DIRECTED INVESTMENT SITUATIONS REQUIRING TAILORED JUNIOR CAPITAL SOLUTIONS, EITHER AS A NON-CONTROLLING OR CONTROLLING INVESTOR. WE SEEK TO CREATE A CUSTOMIZED AND UNIQUE CAPITAL SOLUTION FOR EACH COMPANY INTO WHICH WE INVEST IN ORDER TO MAXIMIZE THE OPPORTUNITY FOR SHARED SUCCESS.

INVESTMENT CRITERIA

INVESTMENT STATISTICS

• $3M+ EBITDA

• $6M+ Investment Size

• $10M+ Revenue

CHARACTERISTICS

• Strong Management

• Sustainable Competitive Advantage

• Positive Earnings (3 Years)

• US or Canada — based HQ

TRANSACTION TYPES

• Leveraged Buyouts

• Recapitalizations

• Management Buyouts

SECTORS

PREFERRED:

• Manufacturing

• Industrial Services

• Distribution

• Business Services

PENINSULA CAPITAL BY THE NUMBERS

27 YEARS IN BUSINESS

7 INVESTMENT FUNDS RAISED

2.0 BILLION OF COMMITTED CAPITAL

• Leveraged Dividends

• Strategic Acquisitions

AVOIDED:

• Real Estate and New Construction

• Natural Resources

• Lending/Finance

140+ PLATFORM INVESTMENTS

70+ INDEPENDENT SPONSOR PLATFORMS